Getting an Unsecured Loan as a High Risk Borrower – The Secrets
If you feel that your poor credit makes you too high a risk to lend to, think again. Many online lenders offer unsecured loans to high risk clients every day.
What Are High Risk Loans?
Basically, there is a network of lenders who understand that there are people who have a need for cash despite a bad credit history. These same people often have no home or vehicle to offer up as collateral for their loan either, making them a high risk to lend to. However, if you have a means of steady income, small unsecured high risk loans can and will be offered to you by online lenders. They are fast to acquire and the application procedure can be completed from the comfort of your own home.
Because these loans are labeled as high risk, the amount of money that you can get with them is much lower than that which can be obtained with collateral or with better credit scores. However, depending on income, you can get anywhere from £1,000-£25,000 and repayment terms that can range from one to twenty-five years.
Again, the high risk nature of these loans will generally cause interest rates to be high. So, if you only need a small amount of money, it is a good idea to take that small loan on a short term. Then, through the process of repaying it you will be able to improve your credit for future transactions.
How to Apply
Many online lenders are willing to extend loans to high risk borrowers for the right fees and interest rates, so there is a really big market out there to look through. Therefore, it is important that you make sure to comparison shop with three to five different lenders before deciding which one to use. You want to make sure that you are getting a reasonable interest rate and that the payments you will have to make each month can fit into your budget. Do not be afraid to say no to one lender if you feel he is being unfair, there is probably another willing to serve you.
Once you have decided on a lender, the application process online is simple. There is usually one page to fill out with basic personal and employment information. These loans, especially those for smaller amounts, can process quickly, so it is reasonable to expect that you will have funds within a day or two to spend how you need.
Do Not Be Afraid
In today’s nasty lending climate, it is easy to get intimidated if you have bad credit and a need for a loan. However, there are unsecured loans out there for those who are high risk and many lenders willing to supply them. You simply need to get out and look.
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ABOUT THE AUTHOR
Joycelyn Crawford is the author of this article. For more information about Easy Loans for Bad Credit and Poor Credit Loans please visit her site http://www.easyloanforyou.com